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India, South Korea to bolster trade ties

By HARBAKSH SINGH NANDA, United Press International

NEW DELHI, Oct. 5 (UPI) -- India and South Korea warmed up to each other by signing an extradition treaty Tuesday and a mutual legal assistance pact on criminal matters.

Seoul and New Delhi also agreed to launch a feasibility study for a trade agreement to substantially enhance bilateral trade and investment on a long-term basis.

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The agreements were reached during South Korean President Roh Moo-Hyun's ongoing visit to the Indian capital, where he held bilateral talks with Prime Minister Manmohan Singh.

Roh, who arrived in New Delhi on Monday on a three-day state visit, is the first South Korean President to visit India in eight years.

Speaking about North Korea's nuclear program, Roh was hopeful of a peaceful resolution. "People in Korea want peace on the basis of mutual trust. ... We are all working to bring about a peaceful resolution. ... Before long, we will come to a peaceful settlement," he told reporters at the Indian President's Palace.

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The visiting president sounded upbeat about South Korea-India relations, saying: "A large number of Koreans are full of hope and expectations about the future (of bilateral ties)."

Roh is accompanied by a large official delegation, including the ministers of foreign affairs and trade, commerce, industry and energy and information and communication.

South Korean companies form the largest trade bloc in India. At least 100 South Korean companies -- including majors like Hyundai, Samsung and LG Electronics -- have large presence in the Indian market.

Roh's visit is aimed at bolstering bilateral trade between the two countries.

Roh's entourage includes at least 27 business leaders, including Kang Shin-ho, chairman of the Federation of Korean Industries, and Kim Jae-chul, chairman of the Korea International Trade Association.

Others include LG Group chairman Koo Bon-moo, Kumho-Asiana Group chairman Park Sam-koo, KT president Lee Yong-kyung, Samsung Electronics president Choi Ji-sung and SK Telecom vice chairman Cho Jung-nam.

The business leaders demanded a free trade agreement between Seoul and New Delhi to enhance trade relations.

The president chose to visit the factory of LG Electronics Monday afternoon as his first engagement in India to boost the local employees. He also met captains of South Korean and Indian industry and assured all possible government help in fostering closer business ties.

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Business leaders from two nations signed agreements to expedite cooperation in electricity, manufacturing plants, exploration of mineral resources, communications and information technology.

South Korea has been targeting India as new market since the nation has emerged as part of BRICs -- along with Brazil, Russia and China -- a grouping of countries seen as driving future world economic growth, the Korea Times reported.

India's Minister of Commerce & Industry, Kamal Nath, said that India and South Korea should aim for annual trade of $10 billion within three years and a sustained average annual Foreign Direct Investment of one billion dollars.

"These are not impossible targets. ... I know we can achieve it if we go about our tasks with single-minded determination," Nath said at a meeting of the business leaders of the two nations.

South Korea is the fifth largest investor in India, pumping in more than $650 million since 1991. South Korea is India's 11th largest trading partner, with two-way trade crossing $3.3 billion mark in 2003.

Roh would also visit Vietnam before returning to Seoul.

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